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Suppose again that furniture production is more ​capital-intensive relative to clothing​ production, which is more​ labor-intensive. If the relative price of furniture to clothing​rises, this will:___________.A. lower the incomes of both labor and capital owners.B. raise the income of labor owners.C. raise the income of both labor and capital owners.D. raise the income of capital owners.

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Answer:Option (D). raise the income of capital owners

Explanation: Suppose again that furniture production is more ​capital-intensive relative to clothing​ production, which is more​ labor-intensive. If the relative price of furniture to clothing​ rises, this will raise the income of capital owners.

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